SGB Redemption Rules 2025: How to Exit Early and What Happens If You Miss the Date

Sovereign Gold Bonds (SGBs) have been among the best-performing government-backed investments in 2025. With gold prices rising sharply this year (over 50%) many investors who bought SGBs in 2017–18 earned over 300% returns on redemption.

However, not everyone managed to redeem their bonds on time. If you missed the premature redemption date, here’s what the Reserve Bank of India (RBI) says about how to exit your SGB investment early.

Details of SGB Redemption Rules 2025 

SGBs come with a tenure of 8 years, but investors can redeem them after 5 years from the date of issue. Premature redemption is allowed only on interest payment dates, which occur twice a year.

The RBI publishes a list of eligible tranches for redemption every six months. Investors whose bonds are listed can apply for early exit through their issuing bank, Post Office, Stock Holding Corporation of India (SHCIL), RBI Retail Direct, or agent.

To qualify, you must submit your redemption request 30 days before the interest payment date. Requests made after that period are not accepted for that cycle.

Missed the Redemption Window? Here’s What to Do

If you miss the RBI-announced redemption window, you have two options:

• Wait for the next eligible redemption period (usually six months later).
• Sell the bonds in the secondary market (if they are held in demat form).

You can also choose to hold the SGBs till maturity (8 years from issue) and receive the full value then.

Partial Redemption Is Allowed

Investors don’t have to redeem the entire holding. The RBI allows partial redemption in multiples of 1 gram, making it easier for investors to cash out gradually.

For early redemption, you’ll need:

• Valid ID proof
• Bank account details
• SGB certificate or demat holding information

How RBI Calculates Redemption Price

The redemption price is based on the average closing price of 999-purity gold for the last three business days before the redemption date, as published by the India Bullion and Jewellers Association (IBJA).

Read more: GST 2.0: Small, Daily Use FMCG Items Like Biscuits and Shampoos to Get Bigger by Mid-November.

Conclusion

Missing an SGB redemption window isn’t the end of the road. Investors can either wait for the next eligible cycle or sell the bonds on the market. With strong returns and 2.5% annual interest, Sovereign Gold Bonds remain a reliable long-term investment backed by the Government of India. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.